Spanish Property Sales in Murcia Continue to Grow!
Compared to this time last year, residential property in Murcia saw an increase in sales growth. In 2017, I reported that Murcia region recorded a 4% increase in sales. This was well below the 14% average growth for the whole of Spain. We came in at number 21 out of 28 regions, but we’ve improved – in fact we recorded an increase in sales of 17% so far in 2018; well above the national average of just 1%, helping our region to leap up the table to the 3rd best for sales growth. By contrast, London has seen a property sales slump of minus 20% in the last 4 years. Elsewhere in the UK, there has been an average sales growth of around 7%, so we certainly should be happy with our performance here.
Spanish Property Values Steady!
The highly respected property valuation company (Tinsa) revealed that the recovery in house prices continues, albeit steadily. The average Spanish property value is still almost 37% less than it was before the crash of 2008. In the years following the crash, property values had dropped between 40-60%, depending on type and area, so, although the gains in values have been slow and drawn out, we must be thankful that the improvement in values continues at all. Property located in the Mediterranean Costas and nearby areas has increased in value by between 2-4% so far this year.
On a Local Level
We have experienced a similar rise in valuations in the areas we operate in, but prospective buyers are still coming in with low offers. Usually the buyers highlight several areas of concern about the property, such as; decorative state, roofing issues, potential faulty electrics or swimming pool, then they calculate the possible costs they will have to remedy them and deduct that from the asking price. It’s a very old, tried and tested method of bargaining. We’ve probably all tried it ourselves in the past and probably with some success, but it still hurts when buying clients try it on us. It’s important to remember it’s nothing personal, but simply a component of getting a better deal. I personally view this kind of thing as a positive – a sign that the client is interested in buying and with good negotiating skills deployed, it frequently leads to a sale.
Fuente Alamo Real Estate/Murcia Coast & Country
Tel 0034 968 598 173